Investors in India’s $2.8 trillion equity market are underestimating the economic impact from the world’s worst coronavirus outbreak, which will delay any recovery and could trigger a “correction" in stocks, according to the country’s top-performing fund manager. The market “is completely ignoring the present situation," said Samir Rachh, who oversees 130 billion rupees ($1.8 billion) of assets at Nippon India Mutual Fund in Mumbai. Domestic institutional investors, including mutual funds and insurers, poured a net $1.5 billion into stocks in April, helping offset a similar outflow from foreign funds. That outperformance has widened further in 2021, helping Nippon’s small-cap fund shine. “Still, the long-term view is that the economy will see a faster recovery once we have dealt with the pandemic."

Source: Mint May 11, 2021 00:33 UTC